School Building Committee approves temporary $2 million transfer to construction contingency

The School Building Committee approved a temporary budget shift on Oct. 30 to cover near-term construction needs for the high school renovation.

Mister Baldwin, School Building Committee member, moved to approve Budget Revision Request No. 3, which the committee adopted by roll-call vote. The revision temporarily transfers $2,000,000 from the project’s FF&E (furniture and fixtures and computer equipment) budget into construction contingency and moves $200,000 from owners’ contingency into testing fees.

Mister Dowd, staff member, told the committee that the project has a limited construction contingency and that near-term change requests could exhaust that balance. “We have $2,200,000 remaining. We have $7,800,000 in potential change requests I’d identified for the remainder of the project,” Dowd said, explaining that the temporary transfer would keep work moving until the city completes a loan order and a project funding agreement amendment with the Massachusetts School Building Authority (MSBA).

Mayor Samaris said he was concerned about the plan and asked for assurances that the FF&E money would be returned when the loan order and MSBA amendment are final. “What proof do we have? How will you show us that all that money will be returned as it was so the necessary purchases can be made?” the mayor asked.

Staff and committee leaders said the project team has written confirmation from the MSBA that a temporary transfer pursuant to the BRR will not make reimbursable charges non‑reimbursable. They also said the transferred funds will be replenished after the city council approves an amending loan order and the MSBA signs the related funding amendment; those steps include a public hearing and a 20‑day referendum period under state law before funds become available.

The committee moved to vote on the BRR. The roll-call vote recorded a majority in favor; one member voted no. The motion passed. Committee members were told the city will request roughly $39.8 million from the city council to replenish project contingency and related increases; if the city council approves a smaller amount, staff said the distribution of funds would be subject to further discussion with the council.

The committee also reviewed that to date the city has received just over $200 million in reimbursements from the MSBA for the project. The BRR includes specific temporary transfers: $1.5 million from furniture and $500,000 from computer equipment to contingency, and $200,000 from owners’ contingency to testing fees.

Committee members asked for the documentation from the MSBA and were told the project team has the email confirmation on file and will report the BRR status and any changes at subsequent SBC meetings.

The motion was moved by Mister Baldwin; the roll-call results were announced during the meeting and the chair declared the BRR approved.